Maruti margin recovers QoQ but remains below the year-ago level
Standalone Q2 margin fell 1.60 percentage points YoY as costs outpaced revenue; lower other income and higher depreciation pulled net profit down -26.67%.
Filed 27 Oct 2026, 15:27 IST · Maruti Suzuki India Ltd (MARUTI)
Key takeaways
- Standalone operating margin declined 1.60 percentage points YoY to 8.93% as expenses grew +28.97%, faster than revenue at +26.70%.
- Standalone net profit fell -26.67% YoY to Rs 2,414.9 cr as other income dropped -52.93% and depreciation rose +88.57%.
- QoQ operating margin recovered 0.71 percentage points as revenue grew +1.69% against expense growth of +0.90%, but remained 3.42 percentage points below the 12.35% peer median.
Price around the results
Costs outpaced revenue on a year-on-year basis
Standalone revenue growth of +26.70% did not translate into equivalent operating-profit growth because expenses increased faster at +28.97%. That pushed operating margin down 1.60 percentage points YoY, even as operating profit still increased +7.42%. Management said adverse commodity prices linked to the West Asia conflict and unfavourable foreign-exchange movement weighed on the margin.
Sequential margin recovery came with higher operating overheads
QoQ, revenue rose +1.69% while expenses increased +0.90%, allowing operating margin to recover 0.71 percentage points from Q1FY27. The company said higher manufacturing overheads and adverse foreign-exchange movement affected the sequential margin comparison. It also attributed the increase in depreciation to a new facility and new model dies; depreciation rose +10.09% QoQ.
Profit quality weakened as other income fell
Other income accounted for 13.58% of pre-tax profit, but declined -52.93% YoY and -77.06% QoQ. Management attributed the year-on-year reduction to mark-to-market losses on invested surplus. The tax rate increased 1.19 percentage points YoY, while interest expense rose +18.77%, adding to the pressure below operating profit.
Margin remains below peers despite the quarterly rebound
The 8.93% standalone operating margin was 3.42 percentage points below the 12.35% median for 61 Consumer Discretionary companies that had reported the quarter. The quarterly margin trend had improved from 8.22% in Q1FY27, but remained below 11.74% in Q4FY26 and 10.53% in Q2FY26. Management's cited commodity, foreign-exchange and overhead pressures are therefore relevant to whether the sequential recovery continues.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹53,340 cr | ₹52,456 cr | +1.69% | +26.70% |
| Other income | ₹430 cr | ₹1,874 cr | -77.06% | -52.93% |
| Expenses | ₹48,577 cr | ₹48,145 cr | +0.90% | +28.97% |
| Operating profit | ₹4,763 cr | ₹4,311 cr | +10.49% | +7.42% |
| Operating margin (%) | 8.93% | 8.22% | — | — |
| Interest | ₹68 cr | ₹64 cr | +6.61% | +18.77% |
| Depreciation | ₹1,960 cr | ₹1,780 cr | +10.09% | +88.57% |
| Profit before tax | ₹3,166 cr | ₹4,341 cr | -27.08% | -25.53% |
| Tax | ₹751 cr | ₹989 cr | -24.09% | -21.61% |
| Net profit | ₹2,415 cr | ₹3,352 cr | -27.96% | -26.67% |
| EPS (₹) | ₹76.81 | ₹106.62 | -27.96% | -26.67% |
Operating margin of 8.93% compares with a Consumer Discretionary sector median of 12.35% across 61 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Problems & risks
- Adverse commodity prices in the context of the West Asia conflict negatively affected margin in Q2 FY27 versus Q2 FY26.
- Adverse foreign exchange movement negatively affected margin in Q2 FY27 versus Q2 FY26.
- Lower non-operating income from mark-to-market losses on invested surplus negatively affected margin in Q2 FY27 versus Q2 FY26.
- Adverse foreign exchange movement negatively affected margin versus Q1 FY27.
- Higher manufacturing overheads negatively affected margin versus Q1 FY27.
- Higher depreciation expense due to a new facility and new model dies negatively affected margin versus Q1 FY27.
What to watch
- Whether standalone operating margin holds above 8.93% after the 0.71 percentage-point QoQ recovery.
- Whether expense growth moderates from +28.97% YoY after exceeding revenue growth of +26.70%.
- Whether depreciation growth moderates from +10.09% QoQ after the new-facility and model-die additions.